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Title:
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The Returns to Education in Entrepreneurship
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|
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Heterogeneity and Non-Linearities |
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Author:
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Iversen, Jens; Malchow-Møller, Nikolaj; Sørensen, Anders |
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Abstract:
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The returns to education in self-employment are addressed in four
different specifications of the relationship between log income and
years of schooling. The specifications range from a standard Mincer
equation with a constant percentage increase in income to an additional
year of schooling to the most flexible specification with dummy
variables for the different number of years of schooling split into different
types of education. Based on the more flexible specifications,
important non-linearities and heterogeneity in the returns to education
in self-employment are found. These results are robust across
different estimation methods: OLS; Heckit correction models to handle
sample selection; and IV to deal with the potential endogeneity of years of schooling. Moreover, the results are insensitive to the use
of different sample years, different definitions of self-employment, and
different income measures for the self-employed. |
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URI:
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http://hdl.handle.net/10398/8225
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Date:
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2011-01-04 |
This work is licensed under a Creative Commons License.
